The Ergonomics in Risk Selection
and Customer Service
Bill Boyd
Senior Vice President
Risk Control
CNA Insurance
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Disclaimer
The information, examples and suggestions presented in this material have been developed from sources
believed to be reliable, but they should not be construed as legal or other professional advice. CNA accepts
no responsibility for the accuracy or completeness of this material and recommends the consultation with
competent legal counsel and/or other professional advisors before applying this material in any particular
factual situations. This material is for illustrative purposes and is not intended to constitute a contract. Please
remember that only the relevant insurance policy can provide the actual terms, coverages, amounts,
conditions and exclusions for an insured. All products and services may not be available in all states and may
be subject to change without notice. CNA is a service mark registered with the United States Patent and
Trademark Office. Copyright © 2015 CNA. All rights reserved.
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Ergonomics Disclaimer
or
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CNA Profile
• 7th largest U.S. commercial lines carrier
– $6.4 billion of property & casualty net written premium in 2012
– Long-standing market presence with over 115 years history
• Business mix is approximately 45% specialty lines, 55% commercial lines
– Serve insurance needs of over 1 million businesses and professionals
across a range of industries
• Broad-based footprint in chosen geographies
– Offices throughout North America and Europe, as well as Bermuda, the
Middle East and Asia
– Long-standing relationships with over 3,000 U.S. brokers and agents
• 2012 acquisition of Hardy Underwriting Bermuda
– Complements CNA’s deep expertise in specialized markets and provides
access to the $35 billion Lloyd’s marketplace
• Consistent operating performance and a high degree of financial stability
CNA P&C
Outlook
Financial Strength Rating
A.M. Best
S&P
Moody's
Stable
Positive
Positive
A
A-
A3
S&P raised its outlook to
Positive in 4Q 2011
Moody’s raised its outlook to
Positive in 2Q 2012
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Broad Geographic Reach
World-class capabilities …
…delivered locally
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Customer Segment Focus
Construction
Manufacturing
Technology
Financial
Institutions
Healthcare
Professional
Services
Small
Business
• Specialized underwriting approach
• Deep understanding of the needs of our insureds
• Distinctive business solutions
• Deeper producer and customer relationships
• Clearly focused underwriting appetite
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Industry-Leading Programs
Construction
 CAM® programs for 12 different construction trades
 Endorsed by 10 national and regional trade organizations
Financial Institutions
 National programs for banks and other lending institutions, insurance companies and
asset managers
 Endorsed business insurance carriers for the California and Arkansas Bankers Associations
Healthcare
 National programs for dentists, nurses, nurse practitioners, nurse anesthetists and allied health
care professionals
 Preferred provider for the property and casualty insurance program offered to LeadingAge
(formerly the American Association of Homes and Services for the Aging)
 Co-founder, National Patient Safety Foundation
Manufacturing
 CAM® programs for 7 manufacturing sub-segments
 Endorsed by 2 leading national trade organizations
Professional Services
 Largest professional liability insurer for architects,
engineers, contractors, accountants, lawyers,
real estate agents
For more
information, visit the
Agent Center site on
CNA.com.
 National programs for architects & engineers and construction
design professionals, accountants, small law firms
( 35 attorneys) and real estate agents
 Professional liability program endorsed by the American Institute of CPAs®,
National Society of Professional Engineers and 9 state bar associations, and the exclusive
E&O insurance carrier for the National Association of Realtors® “Realtor Benefits Program”
Technology
 The only package carrier to offer a customized Tech E&O solution
 Industry-leading CNA NetProtect® product includes first- and third-party cyber liability and E&O
coverages
 Insurance solutions for today’s tech companies, including cloud computing and digital media
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Workers’ Compensation Cases
Jurisdiction
State
Loss Desc
Customer
Inc Loss
Louisiana
Pulling on the Strapping Machine strain to
lower back.
PACKAGING COMPANY
$382,751
California
Pain to lower back and left leg from work
environment.
PAINT COMPANY
$561,917
Georgia
Employee received strain to cervical - left
shoulder from lifting Roof Material.
ROOFING COMPANY
$440,126
California
Employee was digging holes and carrying
pipes and received back injury.
TELECOMMUNICATIONS
$455,663
Massachusetts
Injury to back from lifting truck bumper.
MECHANICAL
CONTRACTOR
$468,866
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Back Surgery Frequency
3 out of 10 injured workers who have
back injuries and who have lost time have
an inpatient back surgery within the same
year as the injury.
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Limitations of Weight
(International Labor Office)
Country
Conditions
Maximum Weight (Male)
Greece
For carrying meat of slaughtered animals
220 pounds
Country
Conditions
Maximum Weight (Female)
Cameroon
Girls and young women under 18 years
of age may not carry loads by means of
hand barrow and two-wheeled carts.
?
Country
Conditions
Maximum Weight
United States
“General Duty Clause”
Analytical Tools
*Back Injuries have been
and are our #1 type of
workplace injury.
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CNA Workers’ Compensation
Claims Between 2006 and 2009
Manual material handling has consistently been the most frequent type of
injury in the manufacturing segment and has been identified as the cause of
the highest portion of employee injuries.
Source: CNA Risk Assessment Study
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2010 – 2012 Back Injury Claims
13.5% of all injuries are “back injuries”. 27% of WC
“lost time” payments go to Back Injuries. Average
notice of loss for these injuries is 12.27 days. Average
length of employment prior to the injury is 3.63 years.
Average age at date of injury is 41 years.
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Aging Workforce
When workers have been on the job for twenty years
of more, accident severity increases. As we age it
takes longer for the body to heal, especially with soft
tissue injuries of the back, shoulders, and legs. In
addition, the cumulative trauma of reaching, bending,
twisting, standing and walking become major risk
factors as the employees age effecting the severity of
injuries.
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CNA Workers’ Compensation
Injury Types
Effects of the Aging Workforce
This chart shows the impact of injury by claimant age.
Source: CNA Risk Assessment Study
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Health and Safety
Workers' Compensation Claims 2006-2009:
Claims and Severity by Incident Type
30,000
25%
20%
20,000
15%
15,000
10%
10,000
5%
5,000
-
MANUAL
STRUCK
HANDLING
BY
/PHYSICAL
CAUGHT EXPOSURE FOREIGN
FALL
STRUCK SLIP/TRIP/F
REPETITIV
< All Other
IN ON OR TO/CONTA OBJECT IN
FROM
AGAINST
ALL
E MOTION
>
BETWEEN CT WITH
EYE
ELEVATIO
24%
20%
11%
10%
9%
7%
6%
5%
3%
5%
Unlimited Severity
12,976
6,027
3,399
14,220
11,772
3,431
793
13,049
25,961
14,844
$100K Limited Severity
10,852
4,404
3,152
11,901
8,071
3,189
679
12,353
18,296
9,805
Claim Count Distribution
% of Claims
Claim Severity
25,000
0%
Incident Type
Manual handling and struck by incidents are frequency drivers,
while slips / trips, falls from elevation and repetitive motion accidents are
severity drivers. The average direct cost of these claims was more than
$12,900 and $14,220 respectively.
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Health and Safety
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Health and Safety
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“We can't solve problems by using
the same kind of thinking we used
when we created them."
Albert Einstein
Question:
How does the ‘ergonomics” exposure affect risk selection, risk
pricing, predictive loss and impact on predicted losses?
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Manufacturing Segment
Manual Material Handling:

Accounted for 24 percent
of all workers’ compensation
claims.

$12,900 average
claim cost.

More than 52 percent of
manufacturing employees
are routinely involved in
manual handling tasks as
part of their job.

MMH programs reduce
claim rates by 16 percent.
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Risk Assessment
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Risk Assessment Data
Formal Written
Program for
manual material
handling
(including rules
and training)
Construction
Food
Processing
Metal
Fabrication
Industrial
Machinery
Manufacturing
Wholesale
Distributors
67.2%
53.7%
47.4%
35.1%
55.0%
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Questions with Largest
WC Frequency Impact
Frequency
Category
Fieldname
Y
N
MMH
Tools / Equipment Used to Assist in MMH
-1%
8%
MMH
Formal Program for Man Mat Handling
-2%
5%
MMH
Effective Man Mat Handling Program
-2%
16%
Repetitive Motion
Assembly Tasks Are Designed To Eliminate The Need To Use A
pinch Grip To Hold Objects
-5%
7%
Repetitive Motion
Workstation Designed To Sit And Stand
-15%
18%
Repetitive Motion
Ergonomically Designed Tools Used
0%
17%
Repetitive Motion
Assembly Tasks Are Designed To Eliminate The Need To Use A
|pinch Grip| To Hold Objects
-5%
7%
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Questions with
Largest Severity Impact
Severity
Category
Fieldname
Y
N
MMH
Tools / Equipment Used to Assist in MMH.
-1%
22%
MMH
Effective Manual Material Handling Program.
0%
19%
MMH
Manual Lifts Limited to 50Lbs.
0%
17%
MMH
Formal Program for Man Mat Handling.
-1%
1%
Repetitive Motion
Objects Grasped And Held With Minimal Effect.
-10%
37%
Repetitive Motion
Workstation Designed to Sit and Stand.
-15%
5%
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Questions with largest Loss Ratio Impact
Loss Ratio
Category
Fieldname
Y
N
MMH
Effective Manual Material Handling Program
0%
30%
MMH
Formal Program for Manual Material Handling
0%
1%
MMH
Manual Lifts Limited to 50Lbs
0%
17%
MMH
Tools / Equipment Used to Assist in MMH
-2%
25%
Repetitive Motion
Ergonomically Designed Tools Used
-3%
7%
Repetitive Motion
Objects Grasped And Held With Minimal Effort
-10%
37%
Repetitive Motion
Workstation Designed To Sit And Stand
-24%
17%
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CNA’s Ergonomic Services Include:
Motion is Money
®
Brian Roberts, CSP, CIE, RRE
Director, Workers’ Compensation and Ergonomics
The Cost of Doing Business
Wasted motion decreases a
workers’ production and
increases their risk of injury.
CNA Risk Control provides the
best strategies, methods and
ideas to enhance our clients
workers’ productivity and reduce
risk factors. For every one
percent reduction in risk, our
customers gain one percent
improvement in productivity.
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MOTION IS MONEY®
The Cost of Doing Business
Coupled with a maturing
workforce, requires employers
to look at injury costs and
productivity. Motion is Money is
CNA’s proven business tool for
both construction and the
manufacturing industry. At CNA
we focus on how to identify
motion wasted within an
organization and apply best
concepts to enhance
productivity and create stronger
profit margins.
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MOTION IS MONEY®
Occupational Safety and
Health is important to your
business which is why CNA
builds programs that work.
Our programs include a process
of small changes that affect your
organization’s productivity,
efficiency and quality and in
results that improve your bottom
line as well as reduce risk.
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Motion is Money
• The art of observing human beings as they are:
–Walking
–Bending
–Carrying
–Pushing
–Pulling
–Lifting
–Climbing
–Descending
–Twisting
–Reaching
–Improvising
–Etc., etc., etc.
… and questioning why work is being done that way
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Motion is Money
• The art of observing human beings as they are:
–Walking
–Bending
–Carrying
–Pushing
–Pulling
–Lifting
–Climbing
–Descending
–Twisting
–Reaching
–Improvising
–Etc., etc., etc.
… and questioning why work is being done that way
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Motion is Money
• The art of observing human beings as they are:
–Walking
–Bending
–Carrying
–Pushing
–Pulling
–Lifting
–Climbing
–Descending
–Twisting
–Reaching
–Improvising
–Etc., etc., etc.
… and questioning why work is being done that way
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Goals of
Motion is Money Process
• Increase in productivity
• Improvement in quality
• Enhanced efficiency
• Reduction in discomfort
• Reduction in absenteeism and turnover
• Reduction in the frequency and severity of injuries.
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Objectives
• To recognize the correlation of the aging work workforce and how it affects
your business operations.
• To better understand motion in the work environment and the affects it has on
productivity, efficiency, and bottom line profitability.
• Provide areas to focus on in your operational process that you can incorporate
into your operations.
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Process Model
Implement, Follow-up,
& Measure Changes
Identify Problems
Baseline Measurements
Continuous Improvement
Develop
Business Solutions
Identify Movements &
Hazards
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CASE STUDY
What Did We Do? Summary
Set the Right
Goal – Zero
Injuries
Connect Safety
& Productivity
in Hearts &
Minds
Innovate!
Eliminate
Primitive Work
Methods
Get Help
From
Outsiders
Where
Needed
Follow Up,
Refocus and/or
Expand
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Changing the Way We Work
Fatigue Factors
• Repetition
• Noise
• Temperature
• Vibration
• Weight
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Industry Comparison
National Average Incident Rates by Industry
6
5
Mechanical Contractors
4
Manufacturing
Electrical Contractors
3
2
Utilities
1
Customer
Petroleum Refineries
0
2008
2009
2010
2011
2012
2013
Source: US Bureau Of Labor Statistics, TABLE 1. Incidence rates of nonfatal occupational injuries and illnesses by industry
and case types, selected years.
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Unexpected Benefits of Changing the
Way We Work
• Improved employee morale
• Increased ease of change
• Good field adoption of techniques
• Improved relationships with suppliers
• Increased trust and reliance upon safety professionals
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The Aging Workforce
Effect on Cost of Injury
Average Cost Per Claim By Age
$35,000
$33,696
$29,663
$30,000
$27,340
$23,992
$25,000
$20,782
$20,000
$18,270
$15,000
$10,000
$30,922
$7,616
$8,685
$19,455
$10,531
$5,000
$0
Source: Customer Claims Data 2009-2012, CNA verified 02/21/14 (Adjusted for outliers)
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Increasing Injuries
60
1700
Hours
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2003 Trajectory*
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Actual Injuries
1300
Hours
40
35
1100
31
30
28
900
24
20
1500
16
18
700
10
500
0
300
'97
'98
Injuries
Millions
Hours and Injuries
'99
'00
'01
'02
'03
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Our Trajectory
Prior to Motion is Money
70
1700
Hours
60
2003 Trajectory*
Actual Injuries
Hours
40
56
52
50
51
62
59
58
54
52
60
60
31
28
24
16
1500
53
35
30
20
59
18
1300
1100
900
700
10
500
0
300
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Injuries
Millions
Hours and Injuries
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Results: 7,700+ Injuries
prevented in 11 Years
70
1700
Hours
60
Actual Injuries
Hours
40
35
31
30
28
24
16
56
52
50
20
59
2003 Trajectory*
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62
59
58
54
52
60
60
1500
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1300
Estimated Savings:
7,700 Injuries and
$100 Million +
18
1100
900
700
10
500
0
300
'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Injuries
Millions
Hours and Injuries
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CNA Ergonomic Philosophy
• We cannot eliminate 100% of the risk factors.
• However, we can reduce or effect 10%, 15%, or even 30% of the
risk factors for a job task.
• Question why work is being done “that way.”
• A culture of continual improvement.
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CNA Risk Control Professionals
• Multi-line expertise with focus on ergonomics, products liability, machine
safeguarding, robotics and property protection systems.
• Trained in Six Sigma and Lean Manufacturing principles (IIE Training.)
• Average experience is 23 years.
• CNA Staff is the only staff in the world that are Recognized Risk Engineers
by Underwriters Laboratories (UL).
• Brian Roberts, Director of Ergonomics Services.
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Thank you.
Exhibitors
Ergo Cup Teams
Speakers
Attendees
“A person’s mind stretched to a new idea never
goes back to its original dimensions.”
Oliver Wendell Holmes
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